US producer prices are expected to rise by 1.1% month-on-month in March 2026, marking the largest increase since March 2022, driven primarily by a surge in energy prices due to the conflict with Iran. This compares with a 0.7% gain in February. Core PPI, which excludes food and energy, is forecast to increase by 0.5%, unchanged from the previous month, suggesting that the oil-driven price spike has not yet broadly filtered through the economy. On an annual basis, headline producer inflation is projected to accelerate to 4.6%, the highest level since February 2023, up from 3.4% in February. Meanwhile, the annual core rate is expected to edge up for a fourth consecutive month to 4.1%, also marking its highest level since February 2023.